Instead of hopping on the “bash the buy here, pay here” bandwagon, take a step back for an objective look at how helpful Buy Here, Pay Here dealerships in Cincinnati, OH really can be. Maybe you had a bad experience at one, or maybe you know someone who did. Regardless, it’s important to set aside the archaic mindset which is convinced that BHPH dealerships are out there to get you. Instead, try to embrace just how important these dealerships might be to you or someone you know. If you have tried securing an auto loan at a bank or other dealership but have been denied because of your credit, a BHPH dealership is your last hope — and exist to help get you into a reliable vehicle and back on your feet. Plus, if your credit score is so bad that you keep getting denied left and right, it’s probably one of the only ways to get it back on track. Finally, the weekly and bi-weekly payments required will promote good financial habits and decrease your chance of credit trouble in the future.
If you look at the dealership from this last resort perspective then you might realize just how important they are to you — the consumer with bad credit.
It’s Your Last Resort
If you are looking for a car loan, your first instinct will either be to go to your average dealership, bank, or credit union. Let’s start with the dealership, since these places aren’t a guarantee when it comes to getting a car. Instead, you need to have a stable job, decent income, and a good credit score and credit report. If you are missing any of these three things, then chances are you won’t get financing at the dealership.
Next stop is your bank or credit union. Banks are much tougher when it comes getting approved for an auto loan compared to dealerships and credit unions, but it’s worth a shot. Unlike the dealership, your bank will most likely have all the information they need to determine if you are eligible for an auto loan. So if they see your poor income, spotty employment record, and bad credit score, you’ll most likely get shot down again.
A credit union is much more flexible with loans, so you might think of heading over there next. But, you need to be a member in order to have a better shot at getting approved for an auto loan. Sign up, and ask what they can do about getting you an auto loan. Although credit unions can be more flexible than a bank or average dealership, that doesn’t mean they are just going to hand you a freebie. If you don’t have your financial habits on track, chances are they won’t be able to give you a loan either.
Why is it such a big deal for these places to give you a loan, you might ask? Because it’s a big risk for them to lend a loan to somebody with bad credit or no credit. They might see your credit history and poor score (or lack of credit score) and think you won’t be responsible enough or otherwise able to make loan payments on time; if at all. When it boils down to it, they just aren’t willing to take on someone with bad or no credit.
And this is why a buy here pay here dealership is your last resort when faced with this type of situation. Their whole purpose is to finance consumers with bad credit or no credit because they have the capability and knowledge when it comes to dealing with those types of consumers. They are able to provide financing because of in-house car loans, which means they are the only ones at risk of financial loss if you default on your loan. Ultimately, they are there to help you which is why they are willing to put themselves at financial risk.
It might be a bit of a hassle making weekly or bi-weekly cash payments at the BHPH dealership, but there is an upside to that — as you’ll see soon…
Chances Are, You’ll Finally Get Your Credit Score Back on Track
Not only is a car loan from a BHPH dealership your only shot of getting back on the road again, but it’s probably one of the only ways — or the only way — to reestablish your credit score. How? Because, even though BHPH dealerships are independently financing you, they are still loaning you a car. The car is still registered and in their system, which means they need to report what happens with it. In turn, they need to report your name for legal purposes, along with your loan progress to the credit bureaus. Loans of any kind can be a great way to build up your credit score, provided you are making on-time payments — and a bad credit car loan from a BHPH dealership is no different.
One of their goals is completely separate from providing you with a car, and it’s to get your credit score back on track. That’s why they report your loan progress to the credit bureaus because they know doing so will help build up your credit score again.
If you build up your credit score (and reputation with the BHPH dealership) that means you will be able to eventually move up to a better car and auto loan in the future.
Weekly Or Bi-Weekly Payments Promote Good Financial Habits
In order to pay off your loan, and start repairing your credit score, you will be required to make either weekly or bi-weekly payments at a BHPH dealership. This isn’t the only way that BHPH dealerships differ from other lenders, either. Chances are you’ll be physically going to the dealership in order to hand them cash. Like I said before, this might be an inconvenience on a weekly or bi-weekly basis, but it has another advantage apart from rebuilding your credit score.
It encourages good financial habits. If you are required to drive to the dealership once or twice a week, and you know that they can repossess your only mode of transportation, you will be motivated to make those payments. Since car loans aren’t paid off overnight, doing this over time will help build stable financial habits.
After you’ve made some progress rebuilding your credit, and when it comes time for you to get a new car loan, you’ll have demonstrated some rigorous financial responsibility, which will make that once a month (or bi-weekly if you so choose) payment a walk in the park by comparison. Getting to that point is all because of the BHPH dealership. So, if you or a friend has bad or no credit and are afraid of BHPH dealerships because of what you’ve heard; just remember their reputations have evolved and most of them are motivated to help.